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Google settles $5 billion lawsuit over ‘incognito’ mode

Google has agreed to settle a class-action lawsuit that accused the tech giant of surreptitiously tracking users in its “Incognito” mode on the Chrome browser. The settlement comes as a resolution to the lawsuit filed in 2020, which sought a minimum of $5 billion in damages for millions of users allegedly affected by Google’s privacy practices.

The lawsuit contended that Google’s “Incognito” mode misled users into thinking their online activities were private when, in reality, the company continued to track their data. Internal emails brought forth during the legal proceedings revealed that Google used the private browsing mode for measuring web traffic and selling advertisements, undermining the intended privacy assurances.

Lawyers representing the plaintiffs argued that Google Analytics or Ad Manager services tracked users even when they were in “Incognito” mode and not logged into their Google accounts. Seeking compensation of at least $5,000 for each affected user, the potential damages could have amounted to a staggering $5 billion.

The preliminary settlement agreement, reached after Google’s request for the case to be decided by a judge was denied, averts a jury trial scheduled for the coming year. The settlement amount remains undisclosed, but it is expected to fall short of the initially sought $5 billion.

The lawsuit, filed in a California court, accused Google of intentionally deceiving users and violating their privacy. The original complaint alleged that Google, along with its employees, had access to intimate details about individuals’ lives, interests, and internet usage.

A formal settlement is anticipated to be presented for court approval by February 24, 2024. This case is another example of class-action lawsuits becoming a predominant avenue for addressing data privacy concerns involving major tech companies, particularly in the absence of comprehensive privacy laws in the United States.

This settlement follows recent trends where tech companies resolve privacy-related lawsuits through monetary agreements. In August, Google paid $23 million to settle a case involving third-party access to user search data. Additionally, in 2022, Meta, the parent company of Facebook, settled a similar case for $725 million related to user data handling.